Internet ad revenue hit $31.7 billion in 2011, topping previous record

Mobile advertising showed explosive growth

Internet advertising revenue soared to a record high of US$31.7 billion in 2011, up 22 percent from 2010, according to a report released Wednesday by the Interactive Advertising Bureau and conducted by Pricewaterhouse Coopers.

Mobile advertising was the fastest growing of all segments, expanding by almost 150 percent to become a $1.6 billion industry.

The rate of growth is particularly impressive because digital advertising also shattered previous records in 2010. The industry grew by a larger percentage in 2011 than it did in 2010.

The industry continues to grow so rapidly because advertisers still have a way to go before they match consumers' embrace of Internet platforms, explained Sherrill Mane, the senior vice president of research and analytics at IAB.

"There's a fact of life called consumers. Consumers are using and embracing digital more and more, and fundamentally the advertising business is still playing catch-up. The money has to flow to where the folks are," she said.

Search advertising, digital video commercials and sponsorships grew as a percentage of the digital advertising market in 2011, according to the study. But mobile advertising was clearly the star.

Mane said that the explosion in mobile advertising reflects both the increasing popularity of smartphones and the relative newcomer status of the medium.

"For many reasons, one can assume that mobile will continue to grow at a rapid clip. One reason is that mobile is catching on with consumers, as well as with marketers and advertisers," she said.

However, "There's a proportion issue: It's not that mobile is outpacing all other digital so much as mobile is growing explosively from where mobile started," she added.

Internet advertising brought in almost half as much as all forms of television advertising last year, according to television data from Kantar Media.

Retail advertisers continue to be the biggest spenders in online advertising.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Cameron Scott

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?